IPG Reports 5% Revenue Decline in Final Earnings as Self-reliant Public Company
Interpublic Group (IPG) announced a 5% year-over-year decrease in global revenues for teh third quarter of 2025, reporting $2.5 billion in revenue including billable expenses. The earnings report, filed as a 10-Q without an accompanying investor call, marks the last time IPG will report results as a publicly traded company before its acquisition by Omnicom Group.
This financial update arrives as IPG prepares to merge with Omnicom, a deal poised to reshape the advertising and marketing landscape. The acquisition, finalized soon, will see Omnicom shareholders control 60.6% of the combined entity, with IPG shareholders owning the remaining 39.4% on a fully diluted basis. The report provides a final snapshot of IPG’s performance before integration, offering a benchmark for evaluating the success of the merger and its impact on the industry.
Key Financial Highlights:
* Global Revenue: $2.5 billion (down 5% year-over-year)
* U.S. Revenue: $1.61 billion (down 5.4% year-over-year)
* Salaries & Related Expenses: $1.37 billion (down 6.4% year-over-year)
* Operating Income: $219 million (up 65% year-over-year)
* Adjusted EBITDA Margin: 18.5% (before billable expenses, restructuring, and deal costs)
* Acquisition Exchange Ratio: 0.344 Omnicom shares per IPG share (or cash equivalent)
According to the 10-Q filing, “Following the close of the transaction, Omnicom shareholders will own 60.6% of the combined company and IPG shareholders will own 39.4%, on a fully diluted basis.” The filing also confirms that, consequently of the merger, IPG will cease to be a publicly traded company.
